Since common stock is at the historic rate, and retained earnings is calculated, what equity do you translate in the all-current method using the current rate? I don’t think I’ve ever had to do that…
Equity (AS A WHOLE) – including the effect of the CTA adjustment (whether a gain or a loss) under the Current rate method -> is at the CURRENT RATE. Why? E = A - L and both A and L are translated at the Current rate.
oh ok thanks.